Label Worx Limited Company accounts

COMPANY REGISTRATION NUMBER: 06729435

Label Worx Limited

Financial Statements

For the year ended

31 December 2024

Label Worx Limited

Financial Statements

Year ended 31 December 2024

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Statement of comprehensive income	11

Statement of financial position	12

Statement of changes in equity	13

Statement of cash flows	14

Notes to the financial statements	15

Label Worx Limited

Officers and Professional Advisers

The board of directors	M Abbott
	C Chambers

Company secretary	M Abbott

Registered office	61b Humber Street
	Hull
	East Yorkshire
	England
	HU1 1TU

Auditor	Streets Audit LLP
	Chartered accountants & statutory auditor
	Enterprise House
	38 Tyndall Court
	Commerce Road
	Lynch Wood
	Peterborough
	Cambridgeshire
	PE2 6LR

Label Worx Limited

Strategic Report

Year ended 31 December 2024

Introduction The directors present their strategic report on the company for the year ended 31 December 2024. The principal activity of the company during the year continued to be that of digital music services for independent record labels. The company continued its expansion and experienced strong growth in the period. Business review Turnover of the financial year ended 31 December 2024 amounted to £39.2m (2023 - £33.5m) an increase of 17% when compared to the year ended 31 December 2023. Profit before taxation increased from £2m in 2023 to £3m during the year under review. As at 31 December 2024 the balance sheet net assets were £1.7m (2023 - £1.3m) and cash at bank was £2.9m (2023 - £2.9m). Principal risks and uncertainties Business environment and market risks The company's revenues are concentrated within the digital music industry, which is both highly competitive and constantly subject to change. The digital nature of this space brings significant risks with regards to changes in end user consumption, new technologies and the emergence of new competitive products. The directors maintain very close links with the entire chain and continue to invest significant time and resource in its software platform to mitigate these risks. Credit risk The company is exposed to credit risk from potential default of its customers. This risk is minimised by most revenues being derived from well-established and market leading streaming platforms across a number of geographic markets where the risk of default is considered to be low. Liquidity risk The directors monitor liquid resources on an ongoing basis to ensure the operating needs of the business are met. This monitoring is especially directed at ensuring Royalty payments are met within contractual terms with no history of default. Research and development activities The directors are keenly aware of the ever-changing nature of the digital music space. To mitigate the inherent risks this brings, the company is constantly assessing and adapting its product offering. This expenditure is capitalised where the relevant criteria is met or otherwise written off to the profit and loss account. Financial key performance indicators The key performance indicators that the directors use to assess the performance of the business are turnover and profit before taxation. Future developments The directors aim to continue the growth of the business by using their experience in the industry to increase the number of labels for whom they distribute. The directors aim to continue to invest in the development of their platform.

This report was approved by the board of directors on 30 September 2025 and signed on behalf of the board by:

M Abbott

Director

Registered office:

61b Humber Street

Hull

East Yorkshire

England

HU1 1TU

Label Worx Limited

Directors' Report

Year ended 31 December 2024

The directors present their report and the financial statements of the company for the year ended 31 December 2024 .

Directors

The directors who served the company during the year were as follows:

M Abbott
C Chambers

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Disclosure of information in the strategic report

The company has chosen to set out in the strategic report information about the future developments of the company and the financial instruments.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 30 September 2025 and signed on behalf of the board by:

M Abbott

Director

Registered office:

61b Humber Street

Hull

East Yorkshire

England

HU1 1TU

Label Worx Limited

Independent Auditor's Report to the Members of Label Worx Limited

Year ended 31 December 2024

Opinion

We have audited the financial statements of Label Worx Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report

This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Day

(Senior Statutory Auditor)

For and on behalf of

Streets Audit LLP

Chartered accountants & statutory auditor

Enterprise House

38 Tyndall Court

Commerce Road

Lynch Wood

Peterborough

Cambridgeshire

PE2 6LR

30 September 2025

Label Worx Limited

Statement of Comprehensive Income

Year ended 31 December 2024

		2024	2023
Note		£	£
Turnover	4	39,250,765	33,536,428

Cost of sales	35,947,898	31,153,116
	-------------	-------------
Gross profit	3,302,867	2,383,312

Administrative expenses		526,228	521,177
Other operating income	5	5,201	46,428
		------------	------------
Operating profit	6	2,781,840	1,908,563

Other interest receivable and similar income	10	231,449	108,750
		------------	------------
Profit before taxation		3,013,289	2,017,313

Tax on profit	11	754,492	456,797
		------------	------------
Profit for the financial year and total comprehensive income		2,258,797	1,560,516
		------------	------------

All the activities of the company are from continuing operations.

Label Worx Limited

Statement of Financial Position

31 December 2024

	2024	2023
Note	£	£

Fixed assets

Intangible assets	13	102,641	113,441
Tangible assets	14	63,006	73,286
		---------	---------
		165,647	186,727

Current assets

Debtors	15	7,957,580	5,873,705
Investments	16	5,379,535	3,610,384
Cash at bank and in hand		2,943,234	2,900,896
		-------------	-------------
		16,280,349	12,384,985

Creditors: amounts falling due within one year	17	14,714,202	11,297,480
		-------------	-------------
Net current assets		1,566,147	1,087,505
		------------	------------
Total assets less current liabilities		1,731,794	1,274,232

Provisions	18	12,827	19,062
		------------	------------
Net assets		1,718,967	1,255,170
		------------	------------

Capital and reserves

Called up share capital	21	100	100
Profit and loss account	22	1,718,867	1,255,070
		------------	------------
Shareholders funds		1,718,967	1,255,170
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 30 September 2025 , and are signed on behalf of the board by:

M Abbott

Director

Company registration number: 06729435

Label Worx Limited

Statement of Changes in Equity

Year ended 31 December 2024

		Called up share capital	Profit and loss account	Total
		£	£	£
At 1 January 2023		100	1,254,554	1,254,654

Profit for the year			1,560,516	1,560,516
		----	------------	------------
Total comprehensive income for the year		–	1,560,516	1,560,516

Dividends paid and payable	12	–	( 1,560,000)	( 1,560,000)
		----	------------	------------
Total investments by and distributions to owners		–	( 1,560,000)	( 1,560,000)

At 31 December 2023		100	1,255,070	1,255,170

Profit for the year			2,258,797	2,258,797
		----	------------	------------
Total comprehensive income for the year		–	2,258,797	2,258,797

Dividends paid and payable	12	–	( 1,795,000)	( 1,795,000)
		----	------------	------------
Total investments by and distributions to owners		–	( 1,795,000)	( 1,795,000)

		----	------------	------------
At 31 December 2024		100	1,718,867	1,718,967
		----	------------	------------

Label Worx Limited

Statement of Cash Flows

Year ended 31 December 2024

	2024	2023
	£	£

Cash flows from operating activities

Profit for the financial year	2,258,797	1,560,516

Adjustments for:
Depreciation of tangible assets	46,515	44,131
Amortisation of intangible assets	10,800	65,000
Other interest receivable and similar income	( 231,449)	( 108,750)
Tax on profit	754,492	456,797

Changes in:
Trade and other debtors	( 2,084,122)	( 105,337)
Trade and other creditors	3,416,722	98,177
	------------	------------
Cash generated from operations	4,171,755	2,010,534

Interest received	231,449	108,750
Tax paid	( 760,727)	( 483,423)
	------------	------------
Net cash from operating activities	3,642,477	1,635,861
	------------	------------

Cash flows from investing activities

Purchase of tangible assets	( 36,235)	( 47,644)
Purchase of intangible assets	–	( 100,000)
Purchases of other investments	(1,769,151)	(3,610,384)
	------------	------------
Net cash used in investing activities	( 1,805,386)	( 3,758,028)
	------------	------------

Cash flows from financing activities

Proceeds from borrowings	247	–
Dividends paid	( 1,795,000)	( 1,560,000)
	------------	------------
Net cash used in financing activities	( 1,794,753)	( 1,560,000)
	------------	------------

Net increase/(decrease) in cash and cash equivalents	42,338	( 3,682,167)
Cash and cash equivalents at beginning of year	2,900,896	6,583,063
	------------	------------
Cash and cash equivalents at end of year	2,943,234	2,900,896
	------------	------------

Label Worx Limited

Notes to the Financial Statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 61b Humber Street, Hull, East Yorkshire, HU1 1TU, England.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis. Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The judgements and accounting estimates that management have made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as disclosed in the accounting policies and notes to these financial statements. 1) Principal vs agent assessment Management assess the contractual agreements with its distributors and customers to establish whether the agreement constitutes a principal or an agency arrangement. This is a material judgement as the disclosure of revenue is significantly different. The company considers that online retailers are its customers as the company has no direct contact with the end users and once a product is provided to an online retailer (upon release) the company has satisfied all performance obligations associated with the agreements with these parties. If the company acted as agent, income would be recognised as net commissions received. Revenue recognition Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding Value Added Tax. Royalties are accounted for in the period in which they are earned. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered. Income tax The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. Operating leases Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. Goodwill Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years. Intangible assets Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill	-	5 years
Development costs	-	3 years
Patents	-	10 years
Trademarks	-	5 years
Computer software	-	3 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	25% straight line
Fixtures and fittings	-	25% straight line
Computer equipment	-	33 % straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Investments

Investment has been classified as a basic financial instrument and have been initially recognised as a financial asset at the transaction price.

Investment has been subsequently measured at fair value with any gains or losses recognised as profit and loss in the Statement of Comprehensive income.

Investment will be tested at least once a year, on the reporting date, for any possible impairment. Impairment will be recognised in profit and loss.

Investment will be derecognised when no future economic benefits are expected to flow to the entity.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Financial instruments

The company holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Digital music revenue	38,781,820	33,105,412
LMS credit sales	36,349	55,411
Subscriptions & Services	136,569	182,518
Consultancy Fees	104,371	27,980
Physical ordering	108,000	64,984
Other income	83,656	100,123
	-------------	-------------
	39,250,765	33,536,428
	-------------	-------------

Turnover by geographical area is as follows:

	2024	2023
	£	£
United Kingdom	3,780,985	2,177,448
Rest of Europe	25,202,765	21,825,079
Rest of world	10,267,015	9,232,497
Total	39,250,765	33,235,024

5. Other operating income

	2024	2023
	£	£
Other operating income	5,201	46,428
	-------	--------

6. Operating profit

Operating profit or loss is stated after charging:

	2024	2023
	£	£
Amortisation of intangible assets	10,800	65,000
Depreciation of tangible assets	46,515	44,131
Impairment of trade debtors	1,503	–
	--------	--------

7. Auditor's remuneration

	2024	2023
	£	£
Fees payable for the audit of the financial statements	48,478	10,972
	--------	--------

8. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Administrative staff	22	16
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	760,433	642,842
Social security costs	77,887	58,529
Other pension costs	15,064	12,890
	---------	---------
	853,384	714,261
	---------	---------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	9,182	9,117
Company contributions to defined contribution pension plans	–	84
	-------	-------
	9,182	9,201
	-------	-------

The number of directors who accrued benefits under company pension plans was as follows:

	2024	2023
	No.	No.
Defined contribution plans	1	1
	----	----

10. Other interest receivable and similar income

	2024	2023
	£	£
Interest on cash and cash equivalents	56,649	74,228
Gain on financial instruments	174,800	34,522
	---------	---------
	231,449	108,750
	---------	---------

11. Tax on profit

Major components of tax expense

	2024	2023
	£	£

Current tax:

UK current tax expense	760,727	483,423

Deferred tax:

Origination and reversal of timing differences	( 6,235)	( 26,626)
	---------	---------
Tax on profit	754,492	456,797
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 23.52 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	3,013,289	2,017,313
	------------	------------
Profit on ordinary activities by rate of tax	753,322	474,483
Adjustment to tax charge in respect of prior periods	–	( 18,610)
Effect of expenses not deductible for tax purposes	1,588	572
Other differences leading to an increase in the tax charge	(418)	352
	------------	------------
Tax on profit	754,492	456,797
	------------	------------

12. Dividends

Dividends proposed before the year end and recognised as a liability:

	2024	2023
	£	£
Dividends on equity shares	1,795,000	1,560,000
	------------	------------

13. Intangible assets

	Goodwill	Development costs	Patents	Trademarks	Computer software	Total
	£	£	£	£	£	£
Cost
At 1 Jan 2024 and 31 Dec 2024	12,000	228,646	102,234	11,798	92,602	447,280
	--------	---------	---------	--------	--------	---------
Amortisation
At 1 Jan 2024	12,000	225,685	7,234	9,893	79,027	333,839
Charge for the year	–	2,961	–	1,663	6,176	10,800
	--------	---------	---------	--------	--------	---------
At 31 Dec 2024	12,000	228,646	7,234	11,556	85,203	344,639
	--------	---------	---------	--------	--------	---------
Carrying amount
At 31 Dec 2024	–	–	95,000	242	7,399	102,641
	--------	---------	---------	--------	--------	---------
At 31 Dec 2023	–	2,961	95,000	1,905	13,575	113,441
	--------	---------	---------	--------	--------	---------

14. Tangible assets

	Freehold property	Fixtures and fittings	Computer equipment	Total
	£	£	£	£
Cost
At 1 January 2024	15,276	74,979	248,794	339,049
Additions	–	862	35,373	36,235
Disposals	–	( 12,968)	( 9,612)	( 22,580)
	--------	--------	---------	---------
At 31 December 2024	15,276	62,873	274,555	352,704
	--------	--------	---------	---------
Depreciation
At 1 January 2024	15,276	74,979	175,508	265,763
Charge for the year	–	16	46,499	46,515
Disposals	–	( 12,968)	( 9,612)	( 22,580)
	--------	--------	---------	---------
At 31 December 2024	15,276	62,027	212,395	289,698
	--------	--------	---------	---------
Carrying amount
At 31 December 2024	–	846	62,160	63,006
	--------	--------	---------	---------
At 31 December 2023	–	–	73,286	73,286
	--------	--------	---------	---------

15. Debtors

	2024	2023
	£	£
Trade debtors	1,615,881	357,937
Prepayments and accrued income	6,066,380	5,283,233
Other debtors	275,319	232,535
	------------	------------
	7,957,580	5,873,705
	------------	------------

16. Investments

	2024	2023
	£	£
Other investments	5,379,535	3,610,384
	------------	------------

Investment in Wise savings/investment account measured at fair value through profit and loss.

17. Creditors: amounts falling due within one year

	2024	2023
	£	£
Trade creditors	392,171	276,256
Accruals and deferred income	13,727,706	10,531,068
Social security and other taxes	535,787	345,662
Director loan accounts	247	247
Other creditors	58,291	144,247
	-------------	-------------
	14,714,202	11,297,480
	-------------	-------------

18. Provisions

	Deferred tax (note 19)
	£
At 1 January 2024	19,062
Unused amounts reversed	( 6,235)
	--------
At 31 December 2024	12,827
	--------

19. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in provisions (note 18)	12,827	19,062
	--------	--------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2024	2023
	£	£
Accelerated capital allowances	12,827	19,062
	--------	--------

20. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 15,064 (2023: £ 12,890 ).

21. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary 'A' shares of £ 1 each	50	50	50	50
Ordinary 'B' shares of £ 1 each	50	50	50	50
	----	----	----	----
	100	100	100	100
	----	----	----	----

All shares issued are non-redeemable and rank equally in terms of voting rights, rights to participate in all approved dividend distributions and the right to participate in any capital distribution on winding up.

22. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses.

23. Analysis of changes in net debt

	At 1 Jan 2024	Cash flows	At 31 Dec 2024
	£	£	£
Cash at bank and in hand	2,900,896	42,338	2,943,234
Debt due within one year	(247)	–	(247)
Current asset investments	3,610,384	1,769,151	5,379,535
	------------	------------	------------
	6,511,033	1,811,489	8,322,522
	------------	------------	------------

Label Worx Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

24. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2024	2023
	£	£
Not later than 1 year	–	10,000
	----	--------

25. Directors' advances, credits and guarantees

Refer to note 26 for information on transactions with the directors.

26. Related party transactions

At the year end directors loan had a credit balance of £247 (2023: £247). The loan is interest free and have no set repayment terms. At year end the balance owed by a company with common directors and shareholders was £nil (2023: £69,110). During the year, total dividends of £1,795,000 (2023: £1,560,000) were paid to the shareholders, who are also the directors. The amounts paid to key management personnel for the year was £9,182 (2023 - £9,117).

27. Controlling party

In the opinion of the directors there is no controlling party.